Investors on the lookout for stocks to provide income in their portfolios should take note of the dividend-growth streaks that stocks have reported. High dividends are tempting, but strong companies and stocks demonstrate consistency over a long period of time that can provide long-term strength and stability to portfolios.
Let’s look at four today that have demonstrated top performance in this category.
Fortis Inc.
Fortis Inc. (TSX: FTS)(NYSE: FTS) has reported over 40 years of dividend growth. Shares of the multi-billion-dollar Canadian utility have increased 8.3% in 2017 as of close on September 22. Fortis showed strong growth in its second-quarter earnings of $257 million, or $0.62 per share, compared to $107 million, or $0.38 per share, in Q2 2016.
Fortis boasts a dividend of $0.40 per share, representing a dividend yield of 3.5%. Its wide economic moat and incredible dividend-growth streak make it a great option for income investors.
ATCO Ltd.
ATCO Ltd. (TSX: ACO.X) has reported over 20 years of dividend growth. ATCO is a holding company with stakes in construction and utilities. The stock has experienced growth of 1.7% in 2017 and has declined 3.3% year over year. The company released its second-quarter results on July 27. Adjusted earnings in the second quarter fell to $71 million from $81 million in Q2 2016. Some loss was incurred due to a retroactive regulatory decision, but even adjusted earnings showed a $7 million loss from the previous year.
ATCO announced a dividend of $0.33 per share, representing a 2.9% dividend yield.
Thomson Reuters Corp.
Thomson Reuters Corp. (TSX: TRI)(NYSE:TRI) has also reported dividend growth for over 20 years. The Toronto-based mass media company has seen its stock decline 2.8% in 2017 and rise 3.9% year over year. Thomson Reuters released its second-quarter results on August 1.
Revenues climbed 2% due to recurring revenues and a boon from recent acquisitions. Adjusted EBITDA grew 11% to $838 million because of higher revenues and improved corporate efficiency initiatives.
Thomson Reuters stock offers a dividend of $0.44 per share, representing a dividend yield of 3.1%.
Empire Company Limited
Empire Company Limited (TSX: EMP.A) is another company that has reported over 20 years of dividend growth. The Canadian conglomerate has seen its stock rise 43% in 2017 and 12% year over year. The company released its fiscal 2018 first-quarter results on September 14. Empire Company posted adjusted net earnings of $87.5 million — up 18.9% compared to the $73.6 million reported in the previous year.
Same-store sales, excluding fuel, climbed 0.5%, and the company gave details on its recently launched Project Sunrise. This is a planned three-year transformation designed to save the company $500 million annually and will work to improve efficiency across the board. CEO Michael Medline was enthusiastic about progress and internal morale regarding the plan.
Empire Company also reported its dividend when it posted its second-quarter results. It boasts a dividend of $0.10 per share, representing a dividend yield of 1.9%.
